I am the president and CEO of Aveksa, a leading provider of business-driven Identity and Access Management software solutions. I'm an accomplished, results-driven software executive with over 20 years of experience in global sales operations, marketing, business development, consulting, product management and engineering. Prior to joining Aveksa, I held senior management positions at BMC Software, BladeLogic, RishiSoft, and Cabletron. I've been awarded six patents in the U.S. and internationally for my work in IT management software systems. I hold a BSEE from IIT India, an MSCE from the University of Massachusetts, and an MBA in Marketing and Finance from Boston University School of Management.

Choose Wisely: Selecting the Right Channel at the Right Time

Name an Indiana Jones villain. No? How about Walter Donavon? He was the Aryan who was warned by one of the knights of the roundtable to “choose wisely” before selecting a chalice in Indiana Jones and the Last Crusade. You know; he hastily chose the gaudy, gold chalice immediately before turning into Betty White? Donavon was so enamored with the possibility of fame, fortune and the good life with his fellow blonde-haired, blue-eyed fascists that he neglected to mull the consequences of his choice in Holy Grails. However our eponymous hero was much more deliberate with his choice.

I’m not waxing nostalgic about Indiana Jones and the Last Crusade for nothing. Like the golden chalice, the allure of partnerships can prove compelling to many unseasoned startups. The ability to quickly build brand recognition and revenue through partnering with more-established businesses may initially seem like a golden opportunity, and in fact many software startups are seduced by the potential of garnering previously unforeseen exposure. But bad partners will promise you the world—without considering the necessary costs.

Everything a startup engages is a trade-off. A new partnership will require an allocation of resources ranging from sales to technical services; time that could be better served exploring and expanding direct revenue markets. This is not to say that a partnership should not necessitate the allocation of certain startup resources, however it should be apparent that you are gaining an equal generation in revenue through the partnership. Too many startups will concede revenue now for brand recognition and the promise of revenue in the future.

Before signing up with a partner, think about their motivations. If a potential partner wants nothing more than to lump you in with a host of lesser competing solutions; stay away. They are unconcerned with your revenue or success. Yes, you may get the fancy logo and increased visibility, but you also risk diluting the perceived value of your product.

Obviously there are many vital and valuable partners, and our company, Aveksa, has partnered with some of the best in the business. In determining our partnerships, we weighed three key criteria to determine an appropriate and mutually beneficial partnership.

Is your potential partner equally vested in your company?

Your partner should be equally as concerned about the market presence and viability of your product. An increase in revenue for them should mean the same for you. If they only are concerned about their bottom line—dump ‘em.

Is your partner trained and familiar with your company’s product?

A partner who is unable to address the concerns of customers will inevitably leave them unsatisfied and leave you cleaning up the mess. Make sure they treat your product like their own.

Did you weigh the stage of the startup and the maturity of the market?

In early stages, it is much more beneficial to employ a direct revenue model as the market will be unfamiliar with you and your product. You are the best source of information about your product and its place in the market, any third-party partner would only serve to muddy the waters. However, if your product portfolio is diverse and relatively established within the marketplace, or the segment of the market you are in has matured to a level where customers fully understand the value from solutions such as yours, then a partnership would serve you well by lowering the cost of sales and expanding your footprint on the market. But remember, as I discussed before [link to other article] your company should not rely on indirect revenue to meet your numbers, but rather as a supplementary source to them. It is no different than when you choose to outsource certain functions like QA, finance, HR etc to partners but understand the pros-cons and above all – can you afford to do it? Is it the right time to do it?

Selecting the right partners are vital to startup success. As the knight in the movie said – “choose wisely,” otherwise, the wrong choice could be your Last Crusade.

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